BofAS Maintains Buy Rating on LEAPMOTOR (09863.HK), Anticipates 5% Dilution of Shareholder Equity from FAW Share Sale
BofA Securities Rating: BofA Securities maintains a Buy rating for LEAPMOTOR (09863.HK) with a target price of $90, citing strong sales growth and overseas expansion, aided by collaboration with Stellantis.
Share Issuance Announcement: LEAPMOTOR announced a conditional agreement to issue 74.8 million shares to FAW Group at RMB50.03 per share, resulting in a 5% dilution of existing shareholder equity.
New Product Launch: The company launched its first MPV, the D99, which is set to compete in the high-end MPV market against competitors like LI AUTO-W (02015.HK) and Denza D9.
Market Context: The short selling activity for LEAPMOTOR is significant, with $50.59M in short selling and a ratio of 19.469%, indicating market skepticism despite the positive outlook from analysts.
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LI AUTO-W Collaborates with Law Enforcement to Break Up Counterfeit Charging Station Operation
Counterfeit Operation Dismantled: LI AUTO-W announced its involvement in a law enforcement operation that dismantled a site producing and selling counterfeit Li Auto-branded charging piles, resulting in the seizure of 16 counterfeit charging piles and related materials.
Legal Actions Taken: The individuals involved in the counterfeit operation have been subjected to compulsory legal measures as per the law.
<Study> G Sachs Ratings/Price Targets for Chinese Auto Manufacturers and Suppliers (Table)
Stock Ratings Overview: Various companies in the automotive sector, including BYD, Li Auto, XPeng, and Fuyao Glass, received "Buy" ratings with adjusted target prices reflecting recent market performance.
Short Selling Activity: Significant short selling activity was noted for several companies, with Li Auto and Minth Group showing high short selling ratios of 34.55% and 21.42%, respectively.
Neutral and Sell Ratings: NIO, Tuopu Group, and Huayu Automotive received "Neutral" or "Sell" ratings, indicating a cautious outlook on their stock performance.
Market Pressures: CLSA reported that rising costs are further compressing automaker profits, with companies like BYD and Leapmotor positioned better to absorb these pressures.
HSI Gains 116 Points at Midday, Driven by Xiaomi and BYD; SMIC Shows Little Movement After Earnings Report
US Retail Sales and Market Response: December retail sales in the US fell short of expectations, while the DJIA rose 0.1% amid speculation of a potential rate cut.
Hong Kong Market Performance: The Hong Kong stock market saw gains, with the HSI up 116 points (0.4%) and notable increases in the HSCEI and HSTECH indices.
Stock Movements and Short Selling: Significant short selling activity was reported, particularly for companies like SMIC and CHINA LIT, which experienced stock price declines despite some companies reporting profit increases.
Automakers' Stock Surge: Automakers led the market gains, with companies like Xiaomi and NIO seeing substantial stock price increases following positive developments in tech innovation and profit forecasts.
LI AUTO-W to Enhance Store Efficiency with 'Store Partner' Initiative Post-Spring Festival
Store Partner Program Launch: LI AUTO-W plans to introduce a store partner program after this year's Spring Festival to enhance operational efficiency and market responsiveness.
Empowerment of Store Managers: The program will empower store managers with greater decision-making authority and will revise the store assessment criteria to include sales, profits, and customer satisfaction.
JPM Cuts LI AUTO-W Rating to Underweight; Recommends GEELY AUTO and SINOTRUK as Top Choices
Market Outlook: JP Morgan predicts the Chinese automobile market will experience a mixed performance in 2023, with potential negative growth similar to 2018, but also volatility driven by new model releases and seasonal trends akin to 2025.
Top Picks: The broker's top stock picks include GEELY AUTO and SINOTRUK, while they see potential in BYD COMPANY, LEAPMOTOR, XPENG-W, and NIO for future positioning.
Investment Ratings: JP Morgan has assigned various investment ratings and target prices for several automobile stocks, with BYD COMPANY and SINOTRUK rated as "Overweight," while LI AUTO-W has been downgraded to "Underweight."
Short Selling Data: The report includes short selling data for the stocks mentioned, indicating varying levels of market sentiment and potential risks associated with each stock.
UBS: LI AUTO-W (02015.HK) Set for Re-rating Boost with L9 Refresh; Buy Rating Maintained
Current Valuation: LI AUTO-W (02015.HK) is currently trading at a valuation level that is below 95% of its historical performance since listing, with net cash making up about two-thirds of its market value.
Market Sentiment: The stock is experiencing pessimistic market sentiment, reflected in a significant short selling ratio of 43.651% and a short selling amount of $302.20M.
Future Growth Catalyst: The anticipated refresh of its flagship SUV, the L9, in 2Q26 is expected to drive growth from a low base in 2025, providing a potential turnaround for the company.
Analyst Recommendation: UBS has reiterated a Buy rating for LI AUTO-W, setting a target price of US$30, citing an attractive risk-reward profile despite challenges from rising commodity costs.
LI AUTO-W Collaborates with Law Enforcement to Break Up Counterfeit Charging Station Operation
Counterfeit Operation Dismantled: LI AUTO-W announced its involvement in a law enforcement operation that dismantled a site producing and selling counterfeit Li Auto-branded charging piles, resulting in the seizure of 16 counterfeit charging piles and related materials.
Legal Actions Taken: The individuals involved in the counterfeit operation have been subjected to compulsory legal measures as per the law.
<Study> G Sachs Ratings/Price Targets for Chinese Auto Manufacturers and Suppliers (Table)
Stock Ratings Overview: Various companies in the automotive sector, including BYD, Li Auto, XPeng, and Fuyao Glass, received "Buy" ratings with adjusted target prices reflecting recent market performance.
Short Selling Activity: Significant short selling activity was noted for several companies, with Li Auto and Minth Group showing high short selling ratios of 34.55% and 21.42%, respectively.
Neutral and Sell Ratings: NIO, Tuopu Group, and Huayu Automotive received "Neutral" or "Sell" ratings, indicating a cautious outlook on their stock performance.
Market Pressures: CLSA reported that rising costs are further compressing automaker profits, with companies like BYD and Leapmotor positioned better to absorb these pressures.
HSI Gains 116 Points at Midday, Driven by Xiaomi and BYD; SMIC Shows Little Movement After Earnings Report
US Retail Sales and Market Response: December retail sales in the US fell short of expectations, while the DJIA rose 0.1% amid speculation of a potential rate cut.
Hong Kong Market Performance: The Hong Kong stock market saw gains, with the HSI up 116 points (0.4%) and notable increases in the HSCEI and HSTECH indices.
Stock Movements and Short Selling: Significant short selling activity was reported, particularly for companies like SMIC and CHINA LIT, which experienced stock price declines despite some companies reporting profit increases.
Automakers' Stock Surge: Automakers led the market gains, with companies like Xiaomi and NIO seeing substantial stock price increases following positive developments in tech innovation and profit forecasts.
LI AUTO-W to Enhance Store Efficiency with 'Store Partner' Initiative Post-Spring Festival
Store Partner Program Launch: LI AUTO-W plans to introduce a store partner program after this year's Spring Festival to enhance operational efficiency and market responsiveness.
Empowerment of Store Managers: The program will empower store managers with greater decision-making authority and will revise the store assessment criteria to include sales, profits, and customer satisfaction.
JPM Cuts LI AUTO-W Rating to Underweight; Recommends GEELY AUTO and SINOTRUK as Top Choices
Market Outlook: JP Morgan predicts the Chinese automobile market will experience a mixed performance in 2023, with potential negative growth similar to 2018, but also volatility driven by new model releases and seasonal trends akin to 2025.
Top Picks: The broker's top stock picks include GEELY AUTO and SINOTRUK, while they see potential in BYD COMPANY, LEAPMOTOR, XPENG-W, and NIO for future positioning.
Investment Ratings: JP Morgan has assigned various investment ratings and target prices for several automobile stocks, with BYD COMPANY and SINOTRUK rated as "Overweight," while LI AUTO-W has been downgraded to "Underweight."
Short Selling Data: The report includes short selling data for the stocks mentioned, indicating varying levels of market sentiment and potential risks associated with each stock.
UBS: LI AUTO-W (02015.HK) Set for Re-rating Boost with L9 Refresh; Buy Rating Maintained
Current Valuation: LI AUTO-W (02015.HK) is currently trading at a valuation level that is below 95% of its historical performance since listing, with net cash making up about two-thirds of its market value.
Market Sentiment: The stock is experiencing pessimistic market sentiment, reflected in a significant short selling ratio of 43.651% and a short selling amount of $302.20M.
Future Growth Catalyst: The anticipated refresh of its flagship SUV, the L9, in 2Q26 is expected to drive growth from a low base in 2025, providing a potential turnaround for the company.
Analyst Recommendation: UBS has reiterated a Buy rating for LI AUTO-W, setting a target price of US$30, citing an attractive risk-reward profile despite challenges from rising commodity costs.
